Target Healthcare REIT PLC

LSE:THRL Stock Report

Market Cap: UK£554.5m

Target Healthcare REIT Valuation

Is THRL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of THRL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: THRL (£0.89) is trading below our estimate of fair value (£1.14)

Significantly Below Fair Value: THRL is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for THRL?

Other financial metrics that can be useful for relative valuation.

THRL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue10.9x
Enterprise Value/EBITDAn/a
PEG Ratio2.2x

Price to Earnings Ratio vs Peers

How does THRL's PE Ratio compare to its peers?

The above table shows the PE ratio for THRL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average12x
IHR Impact Healthcare REIT
7.7x7.2%UK£365.9m
ESP Empiric Student Property
10.8x20.7%UK£578.2m
PRSR PRS REIT
6.1x0.8%UK£574.5m
SHED Urban Logistics REIT
23.2xn/aUK£573.9m
THRL Target Healthcare REIT
7.6x3.4%UK£554.5m

Price-To-Earnings vs Peers: THRL is good value based on its Price-To-Earnings Ratio (7.6x) compared to the peer average (12x).

Price to Earnings Ratio vs Industry

How does THRL's PE Ratio compare vs other companies in the Global Health Care REITs Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a31.6%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a31.6%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: THRL is good value based on its Price-To-Earnings Ratio (7.6x) compared to the Global Health Care REITs industry average (27.7x).

Price to Earnings Ratio vs Fair Ratio

What is THRL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

THRL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.6x
Fair PE Ratio15.1x

Price-To-Earnings vs Fair Ratio: THRL is good value based on its Price-To-Earnings Ratio (7.6x) compared to the estimated Fair Price-To-Earnings Ratio (15.1x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst THRL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£0.89
UK£1.05
+17.4%
4.8%UK£1.10UK£1.00n/a2
Oct ’25UK£0.91
UK£1.05
+15.5%
4.8%UK£1.10UK£1.00n/a2
Sep ’25UK£0.83
UK£0.99
+19.3%
4.5%UK£1.04UK£0.95n/a2
Aug ’25UK£0.82
UK£0.99
+20.9%
4.5%UK£1.04UK£0.95n/a2
Jul ’25UK£0.78
UK£0.99
+26.9%
4.5%UK£1.04UK£0.95n/a2
Jun ’25UK£0.78
UK£0.99
+27.2%
4.5%UK£1.04UK£0.95n/a2
May ’25UK£0.79
UK£0.99
+26.8%
4.5%UK£1.04UK£0.95n/a2
Apr ’25UK£0.84
UK£1.02
+20.5%
6.4%UK£1.08UK£0.95n/a2
Mar ’25UK£0.80
UK£1.02
+27.0%
6.4%UK£1.08UK£0.95n/a2
Feb ’25UK£0.82
UK£1.00
+21.4%
5.0%UK£1.05UK£0.95n/a2
Jan ’25UK£0.86
UK£1.00
+15.9%
5.0%UK£1.05UK£0.95n/a2
Dec ’24UK£0.84
UK£1.00
+19.6%
5.0%UK£1.05UK£0.95n/a2
Nov ’24UK£0.74
UK£1.00
+34.6%
5.0%UK£1.05UK£0.95n/a2
Oct ’24UK£0.76
UK£1.01
+33.2%
5.9%UK£1.07UK£0.95UK£0.912
Sep ’24UK£0.74
UK£1.01
+36.9%
5.9%UK£1.07UK£0.95UK£0.832
Aug ’24UK£0.73
UK£1.01
+37.6%
5.9%UK£1.07UK£0.95UK£0.822
Jul ’24UK£0.72
UK£1.01
+40.7%
5.9%UK£1.07UK£0.95UK£0.782
Jun ’24UK£0.78
UK£1.01
+29.2%
5.9%UK£1.07UK£0.95UK£0.782
May ’24UK£0.77
UK£0.97
+26.1%
7.3%UK£1.07UK£0.90UK£0.793
Apr ’24UK£0.70
UK£0.97
+38.8%
7.3%UK£1.07UK£0.90UK£0.843
Mar ’24UK£0.77
UK£0.97
+26.4%
7.3%UK£1.07UK£0.90UK£0.803
Feb ’24UK£0.80
UK£0.97
+21.5%
7.3%UK£1.07UK£0.90UK£0.823
Jan ’24UK£0.80
UK£0.97
+21.4%
7.3%UK£1.07UK£0.90UK£0.863
Dec ’23UK£0.79
UK£0.97
+22.9%
7.3%UK£1.07UK£0.90UK£0.843
Nov ’23UK£0.89
UK£0.97
+8.9%
7.3%UK£1.07UK£0.90UK£0.743
Oct ’23UK£0.92
UK£1.09
+19.1%
1.3%UK£1.10UK£1.07UK£0.763

Analyst Forecast: Target price is less than 20% higher than the current share price.

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